BRIEFING TO ANALYSTS ON SILK HOLDINGS BHD 20-21 JAN 2014 AGENDA - - PowerPoint PPT Presentation

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BRIEFING TO ANALYSTS ON SILK HOLDINGS BHD 20-21 JAN 2014 AGENDA - - PowerPoint PPT Presentation

Jun 29, 2023 33 likes •305 views

BRIEFING TO ANALYSTS ON SILK HOLDINGS BHD 20-21 JAN 2014 AGENDA Group Overview SILK Group Group structure Highway Infrastructure Divisions (HID) Oil & Gas Support Services Divisions (OGSSD) Key clients

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BRIEFING TO ANALYSTS ON SILK HOLDINGS BHD

20-21 JAN 2014

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AGENDA

  • Group Overview

– SILK Group – Group structure – Highway Infrastructure Division’s (HID) – Oil & Gas Support Services Division’s (OGSSD) Key clients Awards & achievements – 5-Year Historical Financial Performance – Q1 FY2014 Performance

  • Highway Infrastructure Division

– 5-Year Historical Financial Performance – Q1 FY2014 Performance – Key Factors Moving Forward – Prospects for FY 2014 – Long-term prospects

2

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AGENDA (continued)

  • Oil & Gas Support Services Division

– 5-Year Historical Financial Performance – Q1 FY2014 Performance – Key Factors Moving Forward – Prospects for FY 2014 – Long-term prospects

  • Additional Information
  • Q&A

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GROUP OVERVIEW

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BRIEF INTRODUCTION TO SILK GROUP

  • SILK Holdings Bhd (“SILK”) started as SILK Concessionaire Holdings Sdn

Bhd on 14 October 1996.

  • Renamed Sunway Infrastructure Bhd on 14 February 2002.
  • Listed on Bursa Malaysia on 17 December 2003
  • The company assumed its present name on 31 October 2008.
  • Assumed its present structure after successful regularisation scheme out of

PN17 status on 14 October 2009: – Involving the acquisition of AQL Aman Sdn Bhd (“AQL”) – Holding company of the 70% owned Jasa Merin (Malaysia) Sdn Bhd (“JM”) – JM is an offshore marine support services company operating since 1982

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GROUP STRUCTURE

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HIGHWAY INFRASTRUCTURE DIVISION’S (HID)

  • Operates through Sistem Lingkaran Lebuhraya Kajang Sdn Bhd (“SILK

HIGHWAY”).

  • Owns and operates a 37 kilometer highway (216 lane kilometers) known

as Kajang SILK Highway or Kajang Traffic Dispersal Ring Road (“the Ring Road”).

  • The concession commenced in 2001 and operations commenced in 2004.
  • The concession expires on 31/7/2037.
  • Ring road encircles Kajang Town, with multiple connectivity. Links

with:

  • Federal Route 1
  • Cheras Kajang Highway (Grand Saga)
  • Lebuhraya Sungai Besi (Besraya)
  • North-South Expressway (PLUS)
  • Lebuhraya Kajang Seremban (LEKAS)
  • South Klang Valley expressway (SKVE)

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HIGHWAY INFRASTRUCTURE DIVISION’S (HID) (continued)

  • Length : 37km (216

lane km)

  • 11 graded-separated

interchanges

  • Dual 3 and 4 lanes

carriageway

  • 4 toll plazas
  • Open toll system
  • Current installed

capacity of 600,000 vehicles per day

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OIL & GAS SUPPORT SERVICES DIVISION’S (OGSSD)

  • Division spearheaded by AQL, the holding company of the 70% owned

JM, an offshore marine support services company.

  • Terengganu State Government owns 30% of JM via State investment

company, Terengganu Incorporated Sdn Bhd (TI)

  • JM has more than 30-year history. Incorporated as Jackson Marine Sdn

Bhd in 1980 and ccommenced operations in 1982. Assumed present name in 1987

  • JM’s principal activity is provision of offshore support vessels (OSV)

services, principally for supply and anchor-handling services.

  • Customers include Petronas Carigali, ExxonMobil, Shell, Murphy,

Petrofac, Carigali Hess etc.

  • Excellent safety record and recognised by oil majors.

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OGSSD: RECENT AWARDS & ACHIEVEMENTS

YEAR

2013 2013 2012 2012 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2009 2008 2006 2005

AWARDS

EMEPMI Marine Contractor of the Quarter Award – 2Q 2011 PCSB / DD Best HSE Performance Awards - 2010 / 2011 EMEPMI Vessel of the Year Awards - MV JM Indah Petrofac 5 Million Man Hours Without Lost Time Incident 2010 EMEPMI Safety Recognition for Hurt Free Operations < 100,000 Manhours ExxonMobil Safety Recognition. Gold Award LUNDIN Certificate of Achievement 2012 / 2013 – MV JM BAYU LUNDIN Certificate of Achievement 2012 / 2013 – MV IDS DARUL EHSAN Petronas Carigali Safety Recognition. HSE Award for Excellent Achievement Petronas Carigali Safety Recognition. HSE Award for Excellent Achievement Petronas Carigali Safety Recognition. HSE Award for Excellent Achievement Gold Award - EMEPMI 2011 Safety Recognition for Hurt Free Operations Exceeding 100,000 MH PSCB Best HSE Performance Marine Contractor FY 2011 EMEPMI Marine Vessel of the Year Award 2011 – JM Murni EMEPMI Marine Contractor of the Year Award 2011 EMEPMI Marine Contractor of the Quarter Award – 3Q 2011 EMEPMI Marine Vessel of the Quarter Award – 2Q 2013 - JM INDAH SHELL MALAYSIA (EP) - Upstream Logistics : Appreciation Award - JM Bayu

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GROUP: 5-YEAR HISTORICAL PERFORMANCE

40.9 223.9 247.7 341.1 383.3 FY09 FY10 FY11 FY12 FY13

Group Annual Revenue

Revenue (RM Mil) 29.5 131.7 129.4 193.5 232.3 FY09 FY10 FY11 FY12 FY13

Group Annual EBITDA

EBITDA (RM Mil) (37.3) 34.5 (5.7) 17.3 26.4 FY09 FY10 FY11 FY12 FY13

Group Annual PBT

PBT (RM Mil) (37.4) 10.0 (11.2) (0.7) 4.4 FY09 FY10 FY11 FY12 FY13

Group Annual PATMI

PATMI (RM Mil)

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GROUP: Q1 FY2014

98.0 99.1 93.8 92.5 94.4 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14

Group Quarterly Trend - Revenue

Revenue (RM Mil) 58.2 58.4 57.5 58.2 62.8 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14

Group Quarterly Trend - EBITDA

EBITDA (RM Mil) 10.7 7.9 4.6 3.2 7.9 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14

Group Quarterly Trend - PBT

PBT (RM Mil) 2.8 2.0 0.7

  • 1.1

2.2 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14

Group Quarterly Trend - PATMI

PATMI (RM Mil)

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GROUP: GEARING

Year Net Debt / (Capital + Net Debt) 2010 90% 2011 92% 2012 93% 2013 93%

  • 46% of total borrowings (RM863 mil) represents

Sukuk and its accrued finance cost at SILK Highway.

  • Future cashflows sufficient to cover commitment.
  • Tenure for another 15 years
  • Limited guarantee security by SILK
  • 50% of the total borrowings (RM942m) mainly for

vessel financing.

  • The O&G sector has a bright outlook in the

foreseeable future

  • Vessel demand and charter rates getting

increasingly firmer

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HIGHWAY INFRASTRUCTURE DIVISION

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HID: 5-YEAR HISTORICAL PERFORMANCE

99,000 116,000 136,000 152,000 173,000 FY09 FY10 FY11 FY12 FY13

Highway Annual Average Daily Traffic Volume (Approx)

ADTV (Units) 40.1 51.0 65.0 67.6 76.8 FY09 FY10 FY11 FY12 FY13

Highway Annual Revenue

Revenue (RM Mil) (37.3) (26.2) (19.1) (19.4) (16.2) FY09 FY10 FY11 FY12 FY13

Highway Annual Trend - LBT

PBT/(LBT) (RM Mil)

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HID: Q1 FY2014

163,000 169,000 177,000 181,000 186,000 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14

Highway Quarterly Trend - Average Daily Traffic Volume (Approx)

ADTV (Units) 18.5 19.0 19.4 19.9 20.8 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14

Highway Quarterly Trend - Revenue

Revenue (RM Mil) (4.7) (3.6) (3.5) (4.2) (2.9) Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14

Highway Quarterly Trend - LBT

LBT (RM Mil)

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HID: KEY FACTORS MOVING FORWARD

  • Ring Road is built to rated capacity of 600,000 vehicles per day.

Minimal capital expenditure for capacity expansion in immediate to medium term.

  • Located in the high growth area of Kajang / Klang Valley. Stands to

benefit from the Greater Kuala Lumpur NKEA.

  • Ample low density areas within highway catchment area

representing good potential for future growth.

  • Excellent linkages and connectivity with other thoroughfares.
  • Sustainable borrowing structure, positive operating cashflow,
  • perating profit and continued attractive growth prospects.

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HID: PROSPECTS FOR FY2014

  • ADTV for Q1 FY2014 stands at 186,000 vehicles per day – growth of

14% Y-O-Y.

  • HID expects another double digit improvement in traffic volume for

FY2014.

  • Expected increase in ADTV should allow HID to improve revenue

for FY2014.

  • HID’s accounting losses for FY2014 expected to continue reducing

trend.

  • Already compliant with MFRS 137 and MFRS 139.

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HID: LONG-TERM PROSPECTS

  • Traffic volume is expected to continue to grow due to:
  • Continuing and increasing development and urbanization in the

surrounding vicinity of Kajang SILK Highway, and

  • SILK Highway’s connectivity with other highways along its

alignment together with the availability of installed capacity

  • Division has been cash flow positive as a result of the restructuring
  • f the long term debt whereby the Sukuk Mudharabah obligation

payments until 25 January 2015 will be limited to the available cash flows.

  • Financial performance of the Division is expected to improve in line

with the traffic volume growth.

  • Given current trends of traffic growth, continued cost volume

management and existing accounting rules, HID is expected to achieve accounting breakeven in a few years.

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OIL & GAS SUPPORT SERVICES DIVISION

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OGSSD: VESSEL ROSTER

  • Current fleet size is 19 vessels. Fleet to

expand to 21 vessels by end of FY2014

  • The average age of vessels owned is

under 4 years.

  • Ability to serve both shallow-water and

deep-water segments.

  • Newest vessel JM Gemilang entered

roster early CY2014.

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Straight Supply Vessels 1. JM Aman 2004 2. JM Indah 2007 3. JM Murni 2007 Anchor-Handling Tug & Supply Vessels 70 Meters 4. JM Bayu 2010 5. JM Sepoi 2011 6. JM Samudera 2011 7. JM Setia 2011 8. JM Ehsan 2011 9. IDS Darussalam 2011 60 Meters 10. JM Damai 2005 11. JM Hadhari 2008 12. JM Seri Besut 2008 13. JM Tenang 2009 14. JM Intan 2009 15. JM Gagah 2 2010 16. JM Perkasa 2 2010 17. JM Purnama 2011 18. JM Permai 2012 19. JM Gemilang 2013 Total costs Average age (years) 3.63 To Be Delivered in FY2014 20. JM Cemerlang AHTS 62M 21. JM Abadi AHTS 70M Delivery Date

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OGSSD: 5-YEAR HISTORICAL PERFORMANCE

206.7 181.3 182.7 291.1 318.4 FY09 FY10 FY11 FY12 FY13

O&G Annual Revenue

Revenue (RM Mil) 42.0 51.4 14.7 37.5 41.8 FY09 FY10 FY11 FY12 FY13

O&G Annual Trend - PBT

PBT (RM Mil) 10 10 12 16 18 2 2 2 6 5 FY09 FY10 FY11 FY12 FY13

O&G Annual Vessels Deployed

Owned (Units) 3rd Party

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OGSSD: Q1 FY2014

16 18 18 18 18 5 3 3 4 2 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14

O&G Quarterly Trend - Vessels Deployed

Owned (Units) 3rd Party 79.5 80.1 74.4 72.6 73.7 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14

O&G Quarterly Trend - Revenue

Revenue (RM Mil) 15.5 11.4 7.4 7.4 10.1 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14

O&G Quarterly Trend - PBT

PBT (RM Mil)

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OGSSD: KEY FACTORS GOING FORWARD

  • Sector’s future expected to be good given its part of NKEA and

Petronas’ planned capex of RM 275 -300 billion between 2011-2015.

  • Clear focus on enhancing domestic activity/participation bodes well

for local operators.

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OGSSD: PROSPECTS FOR FY2014

  • JM, mainly due to vessel mix & age as well as safety & delivery track

record, remains competitive for renewals and new contracts/mandates

  • Current fleet enjoying good utilisation rates, which should translate

to better yield.

  • 3 new vessels to enter roster in FY2014 – 2 60-m/60 MT BP AHTS

and 1 70-m/120 MT BP AHTS. Revenue is expected to increase with increase vessel deployment. PBT to improve in tandem. Increase in depreciation and financing costs from additional vessels will offset revenue gains somewhat.

  • Acquisition of remaining interest in JMG1, JMG2, JMG3 and JMG4

(completed in Dec 2013) will have an overall positive impact on the SHB Group in terms of net profits attributable to the equity holders

  • f SHB.

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OGSSD: LONG-TERM PROSPECTS

  • As relatively young fleet, accordingly should benefit from higher

reliability and lower maintenance. Hence will enjoy better utilisation and better yields.

  • Ability to serve deep-water segment with addition of JM Bayu and

JM Sepoi in late 2010, JM Samudera and JM Setia in 2011, as well as JM Darul Ehsan and JM Darussalam (as owned vessels in 2013).

  • Inclusion of JM Abadi once delivered in mid 2014 will add to

capability to serve deep-water segment.

  • Acquisition of JMG1, JMG2, JMG3 and JMG4 will allow better

control of vessels previously co-owned with GMV-Jasa.

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THANK YOU

27 For queries: info@silk.my